The probe, dubbed the Virtual Integrity Initiative, is a fact-finding inquiry into the thirteen platforms. It has requested information on their operations, internal controls, and safeguards to protect customer assets. Overall, the initiative wants to improve transparency and accountability and to better inform investors and consumers.

“With cryptocurrency on the rise, consumers in New York and across the country have a right to transparency and accountability when they invest their money. Yet too often, consumers don’t have the basic facts they need to assess the fairness, integrity, and security of these trading platforms,” Schneiderman said in the statement.

“Our Virtual Markets Integrity Initiative sets out to change that, promoting the accountability and transparency in the virtual currency marketplace that investors and consumers deserve.”

The questionnaire provided to the cryptocurrency exchanges has seven major topics with 31 questions to answer.

Ownership and control

Basic operations and fees

Trading policies and procedures

Outages and other suspensions of trading

Internal controls

Privacy and money laundering

Protection against risks to customer funds

An eight topic — written materials — ask the exchanges to provide copies of documents such as the platform’s current team, its policies and procedures, and initial application to the New York State Department of Financial Services.

The cryptocurrency exchanges have until May 1, 2018, to submit their responses. Once the attorney’s general office has received all the responses, it will analyze them, compare them to one another, and then release its findings to the public.

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